As presented on December 11, 2017, the draft ordinance proposes three types of shortterm

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1 City Council Workshop Agenda Item #1 January 24, 2018 Short Term Rentals The City Council has held three workshops on the issue of Short-Term Rentals since October Materials from those meetings can be viewed electronically via the following links: Workshop of October 11, 2017; Workshop of November 13, 2017; Workshop of December 11, The initial guidance from City Council on October 11 led to a draft policy (in the form of proposed ordinance amendments to Chapter 14, Business Licensing), which was reviewed by City Council on Nov. 13. Further Council guidance was provided at that time, and on Dec. 11 the City Council was presented an updated Regulatory Framework. City Council then asked staff to incorporate some of the feedback given during the Dec. 11 workshop and schedule the ordinance for first reading, with the understanding there may be additional amendments needed which could be made from the floor by Councilors once they had reviewed the updated draft ordinance. The City Council also asked staff to draft amendments to Chapter 27, Zoning, to clarify the language as it relates to short-term rentals. However, at the December 27 Council workshop, a majority of Council opted to schedule another workshop on this matter. Those events have brought us to tonight s workshop on January 24, 2018, and staff is now presenting the ordinance in draft form and seeking further guidance from City Council about how it wishes to proceed. As presented on December 11, 2017, the draft ordinance proposes three types of shortterm rental: 1. Type I rentals are considered hosted stays, where the owner is hosting a guest at their primary residence for a period of less than 30 days, and the owner is present during the rental period. As the ordinance is drafted, this type of rental would have no frequency or durational limitations, but would be required to register with the City and meet other standards for safety, occupancy limits, guest parking, etc. 2. Type II rentals are considered seasonal and/or temporary rentals of an owner s primary residence for a period of less than 30 days while the owner is away. For example, a resident homeowner could rent his/her home for a series of weeklong rentals during the summer months. As the ordinance is drafted, a Type II rental could not be rented to more than one party of guests during a 7 day period, and the dwelling could not be rented more than 90 nights in total in a one-year period. 3. Type III rentals are considered rentals of a single-family dwelling that is not the primary residence of the owner. Like Type II rentals, the unit may not be rented to more than one party of guests in a 7 day period, but there would be no cap on

2 the number of days it could be rented throughout the year and would be prohibited in Residential A, AA, & G zones. These three types of short-term rentals would all be required to register with the City prior to renting to guests on a short-term basis. To be clear, the rental of dwelling units for a term of 30 days or more is NOT considered a short-term rental and this ordinance would not apply. Short-term rentals are defined as guest stays of less than 30 days and is intend to avoid conflict with state statute related to tenancy at-will (so-called month-tomonth leases). Short-term rentals would be forbidden in buildings with three or more dwelling units, would be prohibited from installing on-premise business signage, would be prohibited from allowing guests to hold gatherings where vehicles or people exceed the maximum allowed guest occupancy, and would be prohibited from preparing or serving foods that would otherwise require a food establishment license. These policies are in addition to many other rules outlined in the draft ordinance. Table in the draft ordinance provides a detailed regulatory framework for each type of short-term rental. As this updated draft ordinance was being prepared, several new questions arose that require further guidance from Council. Staff will be seeking this guidance from Council on Wednesday night to ensure the product we deliver is what you want. These questions include: 1. Should attached dwelling units not occupied by the owner as their primary residence be allowed to operate as Type I (hosted stay) rentals? Scenario: The current draft ordinance allows an owner who occupies one unit as their primary residence to rent another attached unit as a Type I rental (hosted stay). This would be a second unit of a two-family dwelling or an authorized accessory dwelling unit (ADU). This policy would allow a whole unit rental on a more or less full-time basis in residential neighborhoods, so long as the owner was present during the stay in their own unit. The basic question is whether a hosted stay should be limited to the same dwelling unit where the owner resides or if it can also be an attached unit under common ownership with the owner present. 2. Related to the previous question, should the owner of a two-family dwelling be able to rent both units as a Type II rental when the owner is temporarily away, or should this be limited only to the owner s dwelling unit? Scenario: An owner of a two-family dwelling occupies one unit as their primary residence, but intends to be away for two months in the summer and would like to rent both units as Type II rentals. This may create a situation where both units are simultaneously rented to two independent guest parties while the owner is temporarily away.

3 3. Should the Length of Guest Stay be uniform across all three types of STR? Scenario: The current draft ordinance prohibits Type II & III rentals from being rented by more than one guest party during a 7-day period. The intent is to limit guest turnover at rentals where the owner is not present, where weeklong (or more) vacation rentals are preferred over single-night or weekend rentals. Type I (hosted stay) rentals are exempt and, in theory, a host could welcome new guests on a daily basis. Should Type I rentals also meet the 1-rental-per-7-day limit or is the ordinance language appropriate as written? 4. Should Type III rentals be prohibited in all residential zones, in addition to the A, AA, and G zones? Scenario: The current draft ordinance would prohibit Type III rentals in the A, AA, and G zones. Type III rentals would be allowed in the VR, RF, RT, WR, and several conditional residential zones. Should Type III rentals be prohibited in all residential zones, to include those listed in Articles V, VI, and X of Chapter 27? 5. Should the ordinance set a maximum number of guests per dwelling unit? Scenario: The current draft ordinance includes an absolute cap on the number of guests at six persons, which is new language added since the December 11, 2017 workshop. This would limit the total guest count to six, regardless of the number of bedrooms and sleeping accommodations available. The original draft ordinance circulated in November limited the number of guests to two per bedroom. This change would cap total guests at six, regardless whether the home has four or more bedrooms. Does the original language suffice or should there also be an absolute cap on guests? 6. Should off-street parking requirements for STRs be in addition to parking already required for the property under Chapter 27, zoning? Scenario: The current draft ordinance requires one off-street parking space per short-term rental guest bedroom on top of the off-street parking spaces required by Chapter 27, zoning. For example, if a single family home with 3-bedrooms was rented as a Type II rental, there would need to be two parking spaces for the home (as required by Chapter 27) plus one space per shirt-term rental guest bedroom for a total of five off-street parking spaces. When considering that the owners would not be present for a Type II rental, the parking requirements may be in excess of what is really needed. If the Council would like to change this, it may consider requiring one off-street parking space for every four guests accommodated, instead of two guests as currently written.

4 7. Should the ordinance implementation schedule be extended to provide a longer notice period to STR operators, time for staff to set up the registration program, and more generally, time to transition the City to a new regulatory scheme for short-term rentals? Scenario: The current draft ordinance includes a 3-phase implementation schedule under section It seems the commencement dates for Phases 2 and 3 may need to be extended to allow sufficient time for the STR operators and City staff to prepare for the new regulations. Many communities that have implemented STR regulations have provided a transition period of several months to more than a year. Council guidance is needed. 8. Should a non-recurring rental of an owner-occupied dwelling unit obligate the owner to register with the City and comply with the ordinance regulating short-term rentals? Scenario: A homeowner is planning a 2-week vacation and would like to advertise and rent their home during the time they are gone. The owner does not intend to rent their home again within the next year. The owner considers the rental a single event. Should the owner be required to register with the City as a Type II STR and comply with the ordinance? In essence, the question is whether there should be a threshold met before the owner would be categorized as an STR operator and required to comply with the ordinance. Staff would be concerned about the complications this could create related to enforcement. In practice, it would likely require a progression in violations before enforcement action would be brought. The Council is being presented this draft ordinance and regulatory framework based on guidance provided to staff during the past several months. If the Council wishes to continue this process, staff is seeking further guidance on the questions above and sections of the draft ordinance highlighted in blue. Staff welcomes any and all further changes to this draft as well as guidance from the Council on the numerous policy questions involved. However, Council has other options that it could consider in addressing this matter. Some members of the public have expressed their displeasure with the Code Enforcement Officer s decision to not make an advisory determination as to whether the current code allows short-term rentals to exist. Council has the option to, in effect, put the brakes on the current process and tell the City Manager that they would like to know the determination of the CEO before proceeding any further. This would be a significant departure from how Council has opted to proceed with this matter to date and is not the recommendation of staff or legal counsel. However, it is an option available to you if you believe the public outcry over this matter outweighs the potential negative ramifications of such an action. Such considerations include: There is no guarantee that the CEO will determine the existing ordinance prohibits short-term rentals. If he determines they are, in fact, allowed because they are not the same as an Inn under our ordinance (for example), existing

5 short-term rental owners may have claims against the City if we then decide in the future to place restrictions or prohibitions on these types of rentals. The shortterm renter s association that has recently formed has already retained an attorney who is hinting at this type of claim, so we are likely to see some type of complaint regardless of how we proceed. But this becomes more problematic if the CEO were to determine they are allowed and then Council changes the ordinance to not allow them. The path Council is on would prohibit a number of short-term rentals that currently exist. Many who feel the existing ordinance already bans short-term rentals will see these rentals banned in a few weeks via the draft ordinance under consideration. Given the concerns noted in the bullet above, why force the CEO to make a determination that he and other key officials have clearly had questions about when this matter will resolve itself in a few weeks, pending Council approval of the draft ordinance? If the CEO does determine that the current ordinance prohibits STRs, his office will take action to begin issuing notices of violation. This could include both owner-occupied and non-owner-occupied rentals. From the discussion Council has had over the past three months, it does not appear that you want to shut down the owner-occupied rentals. However, once the CEO makes his determination, they very well could be. If Council then chooses to continue with the process at hand and allow owner-occupied rentals to exist, the CEO will have wasted staff time and tax dollars on shutting down these operations. It will also have caused unneeded consternation amongst the owners of these types of rentals. When the CEO issues his determination and/or makes a decision on an application to operate a short-term rental, his decision can be appealed to the Board of Appeals. So whether he determines they are allowed or are not allowed, the appeals board will have a chance to weigh in. If the person appealing the decision to the appeals board does not like their ruling, the matter can be taken to court. In that case, a court gets to decide what South Portland s ordinance says about short-term rentals. Doesn t the City Council want to make that decision and not have a court do so? These are some of the reasons why staff continues to advise Council to set policy on short-term rentals expressly, by way of an ordinance amendment, so that there are no questions surrounding legislative intent, definitions of lodging establishments, etc. The City will then implement and enforce this ordinance. Assistant City Manager Josh Reny, Planning Director Tex Haeuser, and Corporation Counsel Sally Daggett will be at Wednesday s workshop to answer any questions Councilors may have.

6 City Manager

7 Chapter 14 LICENSES, PERMITS AND BUSINESS REGULATIONS GENERALLY ARTICLE I. IN GENERAL Sec License regulations; schedule. KEY TO SCHEDULE: CC Denotes license granted by City Council CLK Denotes license granted by City Clerk CMR Code of Maine Rules MRSA Denotes Maine Revised Statutes Annotated, as may be amended from time to time OY Denotes one year from date of issuance P Denotes Permit L Denotes License R Denotes Registration issued by City Clerk Police Denotes review of application by Police Department required prior to issuance or renewal, unless otherwise noted Fire Denotes review of application by Fire Department required prior to issuance or renewal, unless otherwise noted Health Denotes review of application by Health Officer required prior to issuance or renewal, unless otherwise noted CEO Denotes review of application by Code Enforcement Department required prior to issuance or renewal, unless otherwise noted Finance Denotes review of application by Finance Director required prior to issuance or renewal, unless otherwise noted Corp Denotes review of application by Corporation Counsel required prior to issuance or renewal, unless otherwise noted Water Denotes review of application by Water Resource Protection Department required prior to issuance or renewal, unless otherwise noted PW Denotes review of application by Public Works Department required prior to issuance or renewal, unless otherwise noted Parks Denotes review of application by Parks, Recreation & Waterfront Department required prior to issuance or renewal, unless otherwise noted Business or Occupation Reference P/L/R Granted by Exp Additional Review by Short-Term Residential Rental Type I Rental Article XVII R CLK OY Type II Rental Article XVII R CLK OY Type III Rental Article XVII R CLK OY Fire, if requested by Fire Chief ARTICLE XVII. SHORT-TERM RESIDENTIAL RENTALS Sec Purpose. The City Council hereby finds that unregulated transient occupancy of dwelling units in residential neighborhoods presents a threat to the public welfare relating to 1

8 compatibility with residential uses and preservation of the character of the neighborhoods in which they are located, and to the availability of housing stock in the City. The purposes of this Article are: (a) to balance the desire of property owners to rent their residential properties to short-term rental guests for compensation against the desire of residents to preserve the peace and quiet of their residential neighborhoods; (b) to preserve and protect residential neighborhood character and livability from the nuisance impacts that are often associated with short-term rentals; (c) to prevent longterm rentals from being replaced with short-term rentals; and (d) to ensure the safety of occupants of short-term rentals. Sec Definitions. Abutting property owners means the owners, according to the most recent City assessment records, of the properties abutting the Owner s property, including property located directly across the street from the Owner s property. Advertising means any form of communication for marketing that is used to encourage, persuade or manipulate viewers, readers or listeners into contracting for goods and/or services as may be viewed through various media, including, but not limited to, newspapers, magazines. flyers, handbills, television commercials, radio, signage, direct mail, websites or text messages. Authorized accessory dwelling unit means a residential living unit, subordinate to a one-family detached dwelling unit that has been approved by the Planning Board pursuant to the Sec et seq. of the City s Zoning Ordinance, as may be amended, and that has a valid certificate of occupancy. Apartment building means a building or portion thereof containing three or more dwelling units arranged, intended, or designed to be occupied by three (3) or more families living independently of each other in a dwelling unit. Dwelling unit means one or more rooms arranged for complete, independent housekeeping purposes with space for living and sleeping; space or facilities for eating or cooking; and provisions for sanitation. Good Neighbor brochure means a document prepared by the City that summarizes the general rules of conduct, consideration and respect, including, without limitation, provisions of the Code of Ordinances, pertaining to the use and occupancy of a dwelling unit used or occupied as a short-term rental. unit. One-family dwelling unit means a building that consists solely of one dwelling 2

9 Owner means a person who is the owner of record of real property as documented by deed or other document evidencing ownership recorded at the Cumberland County Registry of Deeds. Owner-occupied means a dwelling unit that is the Owner s primary residence. In the case of a parcel comprised of a one-family dwelling unit and an authorized accessory dwelling unit, the unit is considered owner-occupied if either unit on such parcel is the Owner s primary residence. Primary residence means an Owner s primary place of residence, as defined by whether the Owner carries on basic living activities at the dwelling unit and whether such dwelling unit is the Owner s usual place of return. Reasonable documentation, such as Maine homestead exemption qualification, voter registration, government ID with address, motor vehicle registration, or other documents approved by the City demonstrating that the property is the Owner s legal residence and that it is such for 183 or more days of the calendar year, shall be indicia of primary residence. Person means a natural person, partnership, association, company, corporation, limited liability company or organization or a member, manager, agent, owner, director, servant, officer or employee thereof. Short-term rental means the use, control, management or operation of a dwelling unit or accessory dwelling unit, in whole or in part; for dwelling, sleeping or lodging purposes by short-term rental guests; for compensation, directly or indirectly. Short-term rental guest means any person who rents a dwelling unit or accessory dwelling unit, in whole or in part, for less than 30 consecutive days. S-T-Rental means the use or occupancy of a legally existing dwelling unit or authorized accessory dwelling as a Type I Rental, Type II Rental and/or Type III Rental as set forth in Table units. Two-family dwelling unit means a building that consists solely of two dwelling Type I Rental means the use or occupancy of a legally existing dwelling unit or authorized accessory dwelling as a Type I Rental as set forth in Table Type II Rental means the use or occupancy of a legally existing dwelling unit as a Type II Rental as set forth in Table Type III Rental means the use or occupancy of a legally existing dwelling unit as a Type III Rental as set forth in Table

10 Sec Applicability. (a) (b) Subject to the requirements and restrictions of this Chapter, S-T-Rentals are allowed as set forth in Table This Article does not apply to an establishment licensed as a lodging establishment under Article V of this Chapter. Sec Prohibited Activities. (a) (b) (c) (d) (e) (f) (g) (h) (i) (j) The short-term rental of property to short-term rental guests that is not in compliance with this Chapter is prohibited. Providing false information with respect to a registration is prohibited. No detached accessory building, vehicle (including a recreational vehicle or camper van), trailer, tent or mobile residential equipment (other than a mobile home) may be registered as a S-T-Rental. Occupancy or use of a dwelling unit within an apartment building for rentals of less than 30 consecutive days is prohibited. Advertising any short-term rental without a City-issued registration number included in the advertisement is prohibited. Notwithstanding any other ordinance provision to the contrary, signage identifying, advertising, providing way finding or otherwise related to use of the dwelling unit as a S-T-Rental is prohibited, either on- or off-site. Short-term rentals are prohibited in commercial or industrial buildings, unless a specific portion of the building is authorized per the Code Enforcement Office and the Fire Chief or his designee for use as a one- or two-family dwelling unit. Renters of S-T-Rentals shall not sublease any portion of the short-term rental to another person during the rental period. Parties, conferences, family reunions, weddings, fundraisers or similar gatherings that are reasonably foreseeable to involve an assemblage of vehicles or persons more than maximum allowable number of short-term guests are prohibited to be conducted by short-term rental guests during a short-term rental. No food shall be prepared for, or served to, short-term rental guests by the S-T-Rental registrant or his/her agent that would require an eating establishment license under either State law or Article VI of this Chapter. 4

11 Sec Registration Required for all S-T-Rentals. Effective March 1, 2018 [need Council guidance], no person shall operate a S-T- Rental without first registering the dwelling unit (or authorized accessory dwelling unit) with the City Clerk. Registration forms and pre-registration self-inspection checklists shall be available in the City Clerk s Office. Non-refundable fees for a Type I, II and III rental registration shall be as set forth in the Schedule of License, Permit, Inspection and Application Fees established by City Council order, and such fee must be submitted with the registration form at the time of registration or renewal. A dwelling unit (or authorized accessory dwelling unit) shall not be considered registered until all information and fees are provided to the satisfaction of the City Clerk and a registration number has been assigned to the unit. Sec Operating Standards and Requirements. A Type I, Type II or Type III Rental is allowed only if it conforms to each of the following operating standards and requirements set forth in this section. (a) Compliance with the requirements of Table is required. Table Type of Rental Type I Type II Type III Type of Structure One-family dwelling unit (including an associated authorized accessory dwelling unit) [need Council guidance] or a twofamily dwelling unit One-family dwelling unit without any associated authorized accessory dwelling unit or a two-family dwelling unit One-family dwelling unit without any associated authorized accessory dwelling unit Amount of Dwelling Unit Rented Includes the rental of an entire dwelling unit OR, if only part of the unit, includes at a minimum a sleeping room and access to a bathroom Whole dwelling unit Whole dwelling unit Owner-Occupied (i.e., Owner s primary residence)? Yes, at least one dwelling unit (or an associated authorized Yes, at least one dwelling unit is the Owner s primary No, dwelling unit is not Owner s primary residence 5

12 Type of Rental Type I Type II Type III accessory dwelling unit) is the Owner s primary residence residence Affidavit of Owner regarding primary residence required? Yes Yes No Owner/Host Operations Owner is living in the dwelling unit (or associated authorized accessory dwelling unit) during the shortterm rental period At least one dwelling unit is Owner s primary residence but Owner is not present in either unit during the shortterm rental period Dwelling unit is not Owner s primary residence Length of Guest Stay Rental is on a temporary basis for periods of less than 30 consecutive days Rental is on a temporary basis for periods of at least 7 consecutive days but less than 30 consecutive days; guests may stay for less than the minimum stay period provided that the rental unit remains vacant until the end of the minimum stay period (e.g., if guest stays for 4 nights, unit must remain unrented/ unoccupied for the 3 subsequent nights) Rental is on a temporary basis for periods of at least 7 consecutive days but less than 30 consecutive days; guests may stay for less than the minimum stay period provided that the rental unit remains vacant until the end of the minimum stay period (e.g., if guest stays for 4 nights, unit must remain unrented/ unoccupied for the 3 subsequent nights) Cap on # of days unit is rented per year? None 90 days in any 365 day period None Is registration per address or per Owner? Registration is per address Registration is per address Registration is per address Can an Owner register an address for more than one type of registration? Owner without any accessory dwelling unit can register an address as both a Type I and a Type II registration (must pay each fee), but address cannot simultaneously be a Type I and a Type III registration Owner without any accessory dwelling unit can register an address as both a Type II and a Type I registration (must pay each fee), but address cannot simultaneously be a Type II and a Type III registration Address can only be registered as a Type III rental; no other type of registration allowed Reviewing Authority City Clerk City Clerk City Clerk 6

13 Type of Rental Type I Type II Type III Notice to Abutting Property Owners? Notice to City Clerk if sale/transfer of property? N/A N/A Upon issuance of new registration No No Yes Inspection Self-inspection upon registration and renewal; thereafter, at request of City inspection officials Self-inspection upon registration and renewal; thereafter, at request of City inspection officials If determined to be necessary by Fire Chief, inspection by Fire Chief or his designee prior to initial registration; thereafter, at request of City inspection officials Locational limits? Allowed in all zoning districts Allowed in all zoning districts Prohibited in A, AA and G zoning districts [Need Council guidance] (b) In addition to the requirements of Table and other applicable laws, ordinances or regulations, the following criteria apply: 1. Registration of each dwelling unit to be used for short-term rental is required. A registration identification number will be given to each unit registered. 2. Only the Owner of the property can register the dwelling unit to be used for short-term rental. 3. The Owner must identify a registered agent or representative for emergency contact purposes. The emergency contact person must be able to respond within 60 minutes to complaints regarding the condition, safety or operation of the dwelling unit as a rental or the conduct of guests, and must be able to take such remedial action on behalf of the Owner, as otherwise allowed by law, to resolve such complaints. 4. At the time of registration, the Owner must provide a certificate of insurance that expressly acknowledges that the property may be used for short-term rental business activity and evidencing (a) property insurance and (b) general liability insurance appropriate to cover the rental use in the aggregate of not less than $1 million or proof that the Owner conducts rental transactions through a hosting platform that provides equal or greater coverage. Any such hosting platform-provided insurance carrier shall defend and indemnify the Owner, as additional named insured, and any user in the building for any bodily injury and property damage arising from the rental. Once registered, the Owner shall maintain the required 7

14 insurances, or such greater amount as otherwise required by law, throughout the term of the registration. 5. For Type I and Type II registrations, the registrant must sign an affidavit identifying the property as his/her primary residence and provide reasonable documentation, such as a written Maine homestead exemption qualification, voter registration, government ID with address, motor vehicle registration, or other documents approved by the City demonstrating that the property is the Owner s legal residence and that it is such for 183 or more days of the calendar year. 6. For Type III registrations, the City Clerk shall provide a one-time notification of the registration issuance to abutting property owners and all owners within five hundred (500) feet of the registered dwelling unit according to the most recent City assessment records, which notice shall include the Owner s emergency contact information. 7. The dwelling unit registration number must be displayed within the dwelling unit, in all advertising, and upon request by City officials. 8. As a condition of registration, the Owner must allow on-site inspections by City inspection officials. Failure of the registrant or his/her representative to allow a City inspection within 48 hours of a City request to conduct the same shall be considered a violation of this Article. 9. As a condition of registration, the registrant must (a) maintain accurate, up-to-date records of all rental transactions involving the dwelling unit, including the number of guests and the length of their stays, and upcoming reservations; and (b) present said information to City inspection officials upon request. Failure of the registrant or his/her representative to provide this information within 48 hours of a City request for the same shall be considered a violation of this Article. 10. Required Posting. As a condition of registration, the registrant must post in plain sight to visitors, inside and near the entrance, a notice that identifies the name, address, address and telephone number of the Owner s emergency contact person, and the following disclaimer: The Owner of these accommodations [print registrant s name] has registered this unit, Registration No., pursuant to the City of South Portland Code of Ordinances, Chapter 14, Article XVII. THE OWNER S REGISTRATION OF THIS DWELLING UNIT DOES NOT CONSTITUTE A FINDING BY THE CITY OF SOUTH PORTLAND THAT THE PREMISES ARE IN COMPLIANCE WITH APPLICABLE BUILDING, LAND USE, FIRE PREVENTION, LIFE SAFETY OR OTHER APPLICABLE CODES OR REGULATIONS. NO INSPECTION FOR COMPLIANCE WITH SUCH REGULATIONS HAS BEEN CONDUCTED, AND NONE IS REQUIRED FOR THE OWNER TO REGISTER THE 8

15 DWELLING UNIT OR TO ENGAGE IN SHORT-TERM RENTAL OF THIS DWELLING UNIT SO LONG AS THE OWNER S USE OF THE PREMISES IS IN CONFORMANCE WITH AND DOES NOT EXCEED THE SCOPE OF THE REGISTRATION. 11. Occupancy limits. Overnight short-term guest occupancy shall be limited to two guests per bedroom or a maximum of six guests, whichever is less. One child under the age of two is allowed per bedroom, and s/he does not count as a guest for purposes of Sec (b). A floor plan and current photographs of each room of each unit to be registered must be submitted with the registration form. 12. Parking. The Owner must submit a sketch plan identifying all parking, including guest parking, as part of the registration process. In addition to the parking requirements of Chapter 27 for the dwelling unit(s) and any authorized accessory dwelling unit, the Owner must also provide at least one off-street parking space for every 2 guests accommodated. [Need Council guidance on parking] Parking space within a garage may be counted; tandem parking is allowed. 13. As a condition of registration, the registrant must agree to provide the Good Neighbor brochure and a statement of conditions that are applicable to the rental to each guest. The statement of conditions must include: a. A maximum number of persons that may occupy the unit; b. A description of the parking that is available for guests and the parking that is not available to guests; c. An emergency contact person available to receive calls from the guest(s) at any time, day or night; d. Emergency exit/building evacuation information; e. Instructions for solid waste disposal and recycling; f. An overview of regulations governing dogs on Willard Beach; g. A statement that parties, conferences, family reunions, weddings, fundraisers or similar gatherings that are reasonably foreseeable to involve an assemblage of vehicles or persons more than maximum allowable number of short-term guests are prohibited to be conducted by short-term rental guests during a short-term rental; and h. A statement that Good Neighbor conduct consistent with the Good Neighbor brochure is expected and includes limiting noise, parking with consideration for neighbors who live in the area, and keeping solid waste/recycling in appropriate bins. 14. Inspections. For Type I and Type II registrations, the Owner must submit a completed self-inspection checklist on a form provided by the City Clerk s Office. For Type III registrations, prior to the issuance of an initial registration for the dwelling unit, the Fire Chief or his designee may 9

16 inspect the dwelling unit to ensure that all applicable fire prevention and life safety requirements are met and, if such inspection is conducted, must provide a positive recommendation, in writing to the City Clerk, that the dwelling unit complies with all applicable fire prevention and life safety requirements prior to the issuance of any registration number. 15. Failure of the registrant or his/her representative to respond to inquiries from the City within 48 hours shall be considered a violation of this Article. 16. Nothing contained in this Article shall supersede any condominium, homeowner or restrictive deed covenants that apply to the Type I, Type II or Type III Rental property. Sec Registration Expiration and Renewal. S-T-Rental registrations are valid for 12 months from the date of issuance of the registration number unless sooner suspended or revoke and must be renewed on an annual basis. Sec Denial, Suspension or Revocation of Registration. (a) (b) (c) The City Clerk may decline to register any dwelling unit upon failure of the registrant to meet all of the requirements of this Chapter. Any appeal of a decision of the City Clerk to decline to register any dwelling unit under the provisions of this Article shall be made to the City Council. The City Council shall conduct a de novo hearing in which it will hear evidence on the registration and make its own findings of fact and conclusions of law on the issue of whether the registration meets the requirements of this Article. Any suspension or revocation hearing shall be pursuant to Sec of this Chapter, with the City Clerk or his/her designee serving as the hearing officer. A registration may be revoked or suspended for violation of any of the provisions of this Chapter. If a violation is found to exist by the City Clerk, the City Clerk, in addition to the suspension or revocation of the then-current registration, may also prohibit the Owner not only from registering that unit under this Article, but also from registering any other dwelling unit under this Article, for 12 months following the current registration expiration date. Sec Transfer of Ownership. Registrations completed under this Article are not transferable to a new owner. Any change in ownership or change in the members/managers/officers of an Owner 10

17 shall require a new registration. Registrations are limited to the dwelling unit for which they are issued and shall not be transferable to a different dwelling unit. A Type III registrant must give written notice to the Code Enforcement Officer and the City Clerk no later than 10 days before the conveyance, transfer or any other disposition of the ownership of, or interest in, or control of the dwelling unit. The notice must include the name and address of the person succeeding to the ownership or control of the dwelling unit. Sec Enforcement. (a) (b) (c) Complaints regarding short-term rentals brought to the attention of any City Department shall be brought to the attention of the Code Enforcement Officer as soon as practicable. A person may also file a complaint with the Code Enforcement Officer. The Code Enforcement Officer shall establish and maintain a log of all complaints for each short-term rental complaint received and substantiated by the City. The Code Enforcement Office shall seek the voluntary correction of all substantiated complaints. When, in the judgment of the Code Enforcement Officer, the nature and/or number of complaints about a registered short-term rental warrants further review of the short-term rental, s/he shall provide a written report of the same to the City Clerk and request that a public hearing be conducted on whether to suspend or revoke the registration. Any suspension or revocation hearing shall be pursuant to Sec of this Chapter, with the City Clerk or his/her designee serving as the hearing officer. When, in the judgment of the Code Enforcement Officer, the nature and/or number of complaints about an unregistered short-term rental warrants further review of the short-term rental, s/he shall provide a written report of the same to the City Council for its consideration of any and all legal or equitable actions and proceedings that may be appropriate or necessary to enforce the provisions of this Chapter. Sec Violations and Penalties. In the event the Owner or his/her guests violate the terms and conditions of the registration, the registration shall not be reissued, and the short-term rental shall cease for at least 12 months following its expiration date, unless good cause is shown that would prevent future violations, subject to the approval of the City Clerk. Violations shall also be subject to fines as set forth in this Article. Each day of a violation shall constitute a separate violation. For the violation of operation of a Type, Type II or Type II Rental without a valid registration, the violator shall be penalized with 11

18 a fine of $1,000 per day for the first offense and an additional fine of $1,500 per day for each additional offense, to be recovered upon complaint to Maine District or Superior Court in Portland, for use of the City. For any other violation of this Article, the violator shall be penalized with a fine of $500 per day for each such violation, to be recovered upon complaint to Maine District or Superior Court in Portland, for use of the City. Any such fine may be in addition to any suspension or revocation imposed in accordance with the provisions of Sec of this Article. In any court action, the City may seek injunctive relief in addition to penalties. The City shall be entitled to recover its costs of enforcement, including its reasonable attorney s fees. Sec Reports and Review. Commencing July 1, 2018 and until such time as the City Council by order authorizes such reporting to be reduced or eliminated, the City Clerk shall provide the City Council with quarterly reports summarizing the number of Type I, Type II and Type III registrations completed in the prior quarter; the names of registrants; the location of the properties for which the registrations were completed in the prior quarter by street address, map/lot number, zoning district, and neighborhood if located within the AA, A or G zoning district; and any written complaints received by the Code Enforcement Officer or the City Clerk about registrants or the registration process in the prior quarter. Sec Severability. The provisions of this Article are severable, and if any provision shall be declared to be invalid or void, the remaining provisions shall not be affected and shall remain in full force and effect. Sec Other Laws. In the event of a conflict between the provisions of this Chapter and any applicable State or local law, ordinance or regulation, the more restrictive provision shall control. The issuance of any S-T-Rental registration pursuant to this Article shall not relieve the Owner of the obligation to comply with all provisions of the Code of Ordinances or any other applicable laws or regulations pertaining to the use and occupancy of the property on which it is located. Sec Effective Date; Applicability Dates. This Article shall become effective pursuant to Section 225 of the City Charter. In order to allow time for residents and property owners to become familiar with the 12

19 requirements of this Article, the prohibitions on certain types of short-term rentals, and the penalties for violations of this Article, the requirements of this Article shall be phased in as follows: Phase One: Notwithstanding the provisions of 1 M.R.S. 302 or any other law to the contrary, commencing on the enactment date of the amendments to this Chapter as evidenced by Ordinance #XX-17/18, no new reservations for shortterm rentals that are inconsistent with this Article shall be accepted by any person. Phase Two: Commencing on March 1, 2018 [need Council guidance], the requirements of this Article regarding the registration and operation of Type I, Type II and Type III Rentals shall apply. Phase Three: Commencing on May 1, 2018 [need Council guidance], all provisions of this Article shall apply; provided, however, that an Owner who provides written evidence, reasonably satisfactory to the City Clerk or his/her designee, of a contract for a non-type I, Type II or Type III Rental entered into prior to the enactment date of the amendments to this Chapter as evidenced by Ordinance #XX-17/18 may honor that contract to the extent that the application of this Article would result in a substantial impairment of such existing contract. Fiscal Note: Less than $1,000,

20 CITY OF SOUTH PORTLAND EMILY F. SCULLY City Clerk LINDA C. COHEN Mayor SCOTT T. MORELLI City Manager SALLY J. DAGGETT Jensen Baird Gardner & Henry District One CLAUDE V.Z. MORGAN IN CITY COUNCIL ORDINANCE # -17/18 District Two KATHERINE W. LEWIS District Three EBEN ROSE THE COUNCIL of the City of South Portland hereby ordains that Chapter 27, Zoning, of the Code of Ordinances of the City of South Portland, Maine be, and hereby is, amended as follows (additions are underlined; deletions are struck out): District Four LINDA C. COHEN CHAPTER 27 ZONING District Five ADRIAN T. DOWLING At Large MAXINE BEECHER ARTICLE I. ADMINISTRATIVE PROVISIONS GENERAL PROVISIONS At Large SUSAN HENDERSON Sec Conformity. (f) Occupancy or use of dwellings for short-term rentals are subject to the requirements of Chapter 14 of the Code of Ordinances. P.O. Box 9422 South Portland, ME Telephone (207) Fax (207)

21 Sec Prohibited uses. Subject to the provisions herein governing lawfully existing nonconforming uses, any use not expressly enumerated herein as either a permitted use or a special exception use shall be considered prohibited in that zoning district. Secs Reserved. ARTICLE II. DEFINITIONS Sec Definitions. Except where specifically defined herein, all words used in this Chapter shall carry their customary meanings. Words used in the present tense include the future, and the plural includes the singular; the word lot includes the word plot ; the word building includes the word structure ; the word shall is always mandatory; and occupied or used shall be considered as though followed by the words or intended, arranged, or designed to be used or occupied. Bed & breakfast inn. A private residence that offers sleeping accommodations on a transient basis to the general public to lodgers in 12 or fewer rooms for rent, in the innkeeper s (owner or operator) principal residence while renting rooms to lodgers, and serves breakfasts at no extra cost to its lodgers. For the purpose of this definition, a lodger means a person who rents a room in a bed & breakfast establishment for fewer than 30 consecutive days. The term does not include a short-term rental as defined herein and regulated under Chapter 14 of the Code of Ordinances. Dwelling. A building designed or used as the living quarters for one or more families. The term shall not be deemed to include a bed & breakfast inn, hotel, inn, motel, rooming house or trailer. Home occupation. An occupation or profession which is: Customarily carried on in a dwelling unit or in a building or other structure accessory to a dwelling unit; carried on by a member of the family residing in the dwelling unit; clearly incidental and secondary to the use of the dwelling unit for residential purposes and does not detract from the basic character of the neighborhood; conforms with the following conditions: 2

22 (e) The home occupation shall not use more than twenty-five (25) per cent of the total floor area of the residential structure. (f) The following are examples of permitted uses under this definition: (1) Office of doctor, dentist, lawyer, engineer, or member of similar recognized profession. (2) Office of teacher or musician. (3) Office of real estate broker or salesman or insurance agent. (4) Use of premises for dressmaking or millinery. (5) Letting of rooms or taking of boarders for 30 or more consecutive days to the same person(s), to a maximum of two (2) persons, conducted by resident occupants only. (6) Family day care home. (7) Group day care home. (g) The following uses are specifically prohibited as a home occupation: (1) Tourist camps, cabins, bed & breakfast inns, inns, motels, hotels, and mobile home parks and short-term rentals. (2) Restaurants or other public eating places. Inn. A business conducted in a building and containing one to twenty sleeping rooms rented on a transient basis to the general public for a period not to exceed 90 days in any 120 consecutive day period. Public dining facilities may be included but no cooking facilities or kitchens are permitted in any of the rooms rented to the public. The term does not include a short-term rental as defined herein and regulated under Chapter 14 of the Code of Ordinances. Short-term rental means the use, control, management or operation of a dwelling unit or accessory dwelling unit, in whole or in part; for dwelling, sleeping or lodging purposes; for less than 30 consecutive days; for compensation, directly or indirectly. Short-term rentals are not available to walk-ins who arrive without a reservation. Short-term rentals do not have signage either on- or off-site identifying, advertising, and/or providing way finding related to the use of the dwelling unit for lodging purposes. The term shall not be deemed to include a bed & breakfast inn, hotel, inn, motel, rooming house, trailer or home occupation. Fiscal Note: Less than $1,000,